Saturday, February 22, 2014

SEC regulations facilitate hiding of hedge fund violations and manipulations


As if being taken over by hedge funds is not enough protection in itself, some regulations the SEC makes also allow hiding hedge funds activities and give better excuse in not discovering what, where and how they violate other laws and regulations and manipulate stocks in comparison with individual investors.  I spoke about this in a previous post. Based on my understanding the SEC requires ordinary people to file with it any ownership of more than 5 percent (Schedule 13D or equivalent) of any stock within 10 days of obtaining that ownership. If you are a hedge fund ,on the other hand, this requirement does not apply to you. Instead you can get in and out obtaining less than 10 percent ownership of all the stocks you want and you only would have to file if your ownership of that stock at the last  day of the year is above 5 percent.      

No comments:

Post a Comment